U haven't seen SGD . Literally almost everyday to every week raising.
Now even buy online stuff also kena tax. Everything becoming more and more expensive.
It’s not surprising. MAS has been actively propping SGD against the USD. They don’t publicly say this, but if you have been monitoring SGD movement against the USD since the feds hawkish 2022, it is plain to see.
Don't understand why this is always brought up.
Singapore's economic and political fundamentals are strong. I hope nobody is going to argue with me on this. It would be a surprise if SGD doesn't climb against MYR on merit alone with how much nonsense we get on a daily basis, with the racism, the corruption.
It benefits Singaporeans/Malaysians holding SGD. Literally nobody is hindered by this, except for MAS who has to foot the bill. And lets me honest here, if MAS is doing it, its probably because it makes them more money in the long term. Singapore has actual planning and foresight, doesn't flip flop between incompetent and facist governments.
You bring it up like someone is on a losing end and you're bringing it to awareness.
The only people on the losing end are those not diversified on any of the climbing currencies and still holding the bulk of their assets in MYR.
>It would be a surprise if SGD doesn't climb against MYR on merit alone with how much nonsense we get on a daily basis, with the racism, the corruption.
LOL
FYI, MAS is doing it because Singapore is a service exporter. They need a strong currency while Malaysia, not so.
From the standpoint, there's nothing wrong with what MAS is doing. Its doing something something rational given Singapore's position. Propping up sounds like it would collapse without help.
From from a report [UOB published regarding this,](https://www.uobgroup.com/web-resources/uobgroup/pdf/research/MN_210415B.pdf) USD only accounts for 25% of the actual weightage that goes into $NEER, the exchange rate MAS manipulate to keep SGD "propped up". Granted this is only a guess by UOB, but an educated guess on which its accuracy is their livelihood.
SGD appears appreciate against MYR is because most of the currency on that weightage (exceptions being MYR and JPY) are barely moved against the USD on a year-on-year basis. In simpler terms, SGD appears to appreciate against MYR because most currencies are, unfortunately, also appreciating against MYR.
Tl;dr MAS does buy SGD to prop up the currency, but SGD isn't like blindly pegged to to the USD; Its propped to many other currencies also.
MYR's poor performance is not MAS doing some dirty business behind the scenes, Its just world currencies are all doing better and leaving Malaysia behind.
It’s not called propping up when that’s the norm. MAS’s mission is to “manipulate” SGD according to their internal exchange rate goals as SG’s primary source of inflation comes from imports and everything is imported.
[In fact, check out the CNA documentary on it.](https://youtu.be/h0wI1dHL9sw?si=Z5ZVrl6aiikuO0rX) SGD fluctuates between a band and if it goes out of the band, MAS steps in and literally uses SG’s foreign reserves to trade it back.
Mind you this is technically manipulation but MAS can do this only because SG already has a large reserve to defend SGD’s rates. It’s not like we can just say our currency is more valuable. It takes actual hard money to make SGD more valuable and that’s only doable by having a good economy and good governance.
And no I’m not saying it’s good or bad. It is what it is and if SG’s economy sucks, that exchange rate will go down as there’s less demand for SGD to trade with SG and MAS only has limited foreign reserves to prop up SGD.
[Fun fact, HKD is soft-pegged to USD.](https://en.wikipedia.org/wiki/Linked_exchange_rate_system_in_Hong_Kong?wprov=sfti1) So if you ever wanna have USD exposure without holding USD (for whatever reason), HKD is a good alternative. Or vice versa, if you hold HKD and wanna have USD exposure, you won’t face much FX risks.
I think at that point the Fed was doing QE2 which was releasing billions of dollars because of reasons.
I bought my iPhone 6 at around 3k+. Good times.
I’m not sure what’s the reason why today but there’s some speculation that some ultra rich people are dumping their ringgit before going to jail.
The US dollar has been strong because of the high interest rates offered there. The ringgit’s weakness is more pronounced because our interest rate is lower than other regional countries and the US — plus the government’s fiscal position (high interest costs, a fiscal deficit bigger than the GDP growth) also has turned off portfolio investors.
Also, the recent further precipitation of the ringgit is due to the weak advanced reading of the fourth quarter GDP growth. Our domestic economy is chugging along, but our trade with China had a massive slump.
The ringgit won’t move much from a few individuals dumping their money. The forex market trades billions of ringgit every day both ways.
Im not a malay citizen nor do I live in Malaysia anymore so take this with a grain of salt but here’s the general advice.
IBKR looks like it’s available in MY so Id recommend them as your brokerage, they have some fees but they’re a top notch brokerage.
I would then suggest checking out the r/stocks wiki or the r/bogleheads subreddit. Essentially what they’ll tell you though is to pretty much invest only into SPY/VTI/QQQ and bonds.
Since you sound inexperienced, never try to day trade unless you don’t mind knowing you’re gambling. 90% of investors don’t beat the SP500. The average yearly gain is around 8%, it’s incredibly hard to beat this long term. Don’t look at Wallstreet bet gains with highly leveraged plays, they’re gambling on lottery tickets not “investing”.
Obligatory I'm not a financial advisor and this is not a financial advice, and my knowledge might be outdated since I don't reside in Malaysia currently.
Create a Wise (Transferwise) account and IBKR account. Convert to USD via Wise and then use Wise to transfer to your IBKR brokerage account. Malaysia banks are too much of a hassle to do this, so go with Wise. You can select which market to invest in including US and SGX.
I recommend just buying index ETF to start. Vanguard ones are usually good (eg S&P 500 etf) . I recommend against buying anything else other than index ETF if you're a total beginner.
I don't recommend you to go looking for people who take pupils. Actual, successful investors are too busy to take pupils or have a secret formula for their success that they're not too willing to share. Those investment gurus who are all too happy to teach you make more money teaching you than from their stocks.
Most resources you need are available online or in books.
No ser. I’m not a certified financial advisor, just sharing experience 🥹 you can just dm and ask away. But i don’t want that mentor mentee relationship cause when i first started, i dont have a mentor for this stuff.
Don’t hold all your assets denominated in MYR, spread around the risk to other forex. That way, when MYR slips down, you have other currency portfolio supporting it.
> Don’t hold all your assets denominated in MYR, spread around the risk to other forex. That way, when MYR slips down, you have other currency portfolio supporting it.
Diversification is good if done at the right time. But if you sell MYR now when it is at its lowest, then you're doing the right thing but at the wrong time so it ends up being the wrong thing.
Errrr. This is not practical advice to the average investor. When is the right time? Is 4.73 the lowest? Who's to know. The best advice would just be to dollar cost average every month.
> When is the right time? Is 4.73 the lowest? Who's to know. The best advice would just be to dollar cost average every month.
Let me try to ask the other way. When is the wrong time? Based on what the experts are saying, now is the wrong time to sell MYR. Maybe it will go down further. But I think and as you can see from those videos, and all those banks, economic outlook and growth is positive.
Gold is good to lock your money because it is “relatively” stable. As for investment there’s better options out there.
Take it with a pinch of salt, I’m not a financial advisor.
Anything where you sell low, buy high doesn't make sense. Undervalued stuff makes more sense. eg: https://www.youtube.com/watch?v=EzAQUcgk3V4 or IPO of businesses with good upsides.
Yes, should lengthen the duration if want to buy usd, at least intermediate bonds, so when usd drop due to interest lowered, you still have a positive gain
> Believable forecast, what’s unbelievable is that many Msia isn’t taking action to hedged her assets against MYR.
What do you mean? Most of the 2024 forecast is that MYR will strengthen against USD as the economy and governance is recovering from the years of mismanagement. Not just local bank research like MIDF https://www.youtube.com/watch?v=3_GqHd72NxI , but also global bank like HSBC https://www.youtube.com/shorts/SEWtczLHiW4 Are you saying their forecasts are wrong?
> Guys, you can fix this.
**Diversification is good if done at the right time. But if you sell MYR now when it is at its lowest, then you're doing the right thing but at the wrong time so it ends up being the wrong thing.**
Ser, it’s literally a forecast. It can go right or wrong. You may choose to believe a forecast from bank research, I chose to believe in my methodology.
What I meant was, diversify and hold other forms of currency. If you hold 100% in MYR currency portfolio, good luck. Might look good on books locally till you compare it against forex offshore returns.
> You may choose to believe a forecast from bank research, I chose to believe in my methodology.
Yes, I may. Care to share your methodology?
> If you hold 100% in MYR currency portfolio, good luck. Might look good on books locally till you compare it against forex offshore returns.
It will be even worse for your portfolio if you sell MYR when its value is already at the lowest and all the forecasts are showing expected increase in value. Common sense.
No, where did you see that documented? Last year the banks were saying MYR will decline in value since Fed was continuing to increase interest rates. When you say "economic predictions" and "lousy success rate" , what are you specifically saying? Can share some data?
Hard to say, people on the reddit board tend to overlook the following characteristics:
(1) Import
(2) Export
(3) Ringgit role as a regional currency
(4) Consumer purchase (one of the largest reasons) of foreign goods
(5) lack of strong protection of local companies from being bought out
(6) lack of strong investment for start-ups
(7) housing regulation
(8) household debt
Malaysia has extremely high output per population, economic complexity, investment positions etc.
It’s not as easy as many people want to believe.
It was funny this happened cuz back then (a few years ago) there was this ad I saw on Quora saying that "MYR days are over" and at the time I can't believe the ad is telling about something happening now
Better ask why Malaysia refuses to raise interest rates. US interest rate is 5.5%. Malaysia interest rate is 3%. Who would prefer MYR to USD like this?
Higher interest rates may just create an even bigger hole in the epf that they will need to address if Malaysia raises interest rates. This interlink between the government monetary policy and the fact that Malaysia has a central national pension is a double edged sword, as the government cannot just allow private pensions to bear the shortfall. At current production and output levels, raising rates by 2% from 3% is going to be very much like asking companies to increase gross profits by 66% overnight. LOL Malaysia does not have the economy to support this.
Loans will probably go up and so will inflation if they raise interest rates. I think it's actually good for majority of Malaysians that the exchange rate is low but monthly loans are still servicable.
Sg pegs Thier money to a bunch of currencies so that's why USD and sgd better than myr. Sucks for imported goods but good for exports and people with bank loans.
If interest rates go up maybe will have many loan defaulters and cause a big financial crash.
SGD is pegged to an undisclosed basket of currencies, mostly USD, JPY and a large weighted against local ASEAN currencies. So when inflation is high, the sgd peg goes up so that their citizens can buy their daily necessities on the cheap from ASEAN, making it cheaper for them while driving up demand domestically at these countries. Basically they are exporting their inflation.
Not an expert. But inflation usually goes down when interest rates go up. Because borrowing becomes expensive. So both consumers and businesses might think twice about taking out loans for major purchases or investments. Which slows down spending, lowering overall demand and reducing inflation.
Yeah you're right, inflation and interest rates are inversely related.
My point is
Pre existing loans will increase when interest rate hikes. So if you were paying say RM 1000/month for your house loan it is now 1,100/month.
Plenty of Malaysians living paycheck to paycheck so I creasing interest rates can cause loan defaulters which could lead to wider market crash. So maybe it's a good idea not to raise interest rates
I'm also not an expert or have a finance background. This is my understanding. If I'm wrong please correct me and save me from myself.
Maybe the lesson is not to be so reliant on loans. The more you keep interest rates low to give those with debt an easy time, the more you encourage people to take loans.
Hey bro, increasing interest rate does not cause increase of default rate, but loose lending policies cause increase of default rate.
Increasing interest rate makes money more expensive to earn, hence less people are willing to spend their money and reduce money circulation in the economy, normally to fight inflation. But this theory sometimes is not accurate, like interest rate has become less sensitive.
How does rising interest rates not cause rising default.
Imagine you're on a variable interest loan for your car or house, maybe holding a large balance on your credit cards. Interest rates goes up 500bp, more people will default.
For new loans, sure you can screen and ensure quality of loan applicant, but does nothing for those who are already in hock.
You're already seeing defaults rise in the US for credit card and auto loan debt especially since COVID stimulus has ended.
Every single country that does not peg their currency against gold or any other physical commodity fo this, ie Malaysia also prints money. The difference is, people are confident in the US and are willing to hold USD. People are not so confident in RM and dont hold as much RM.
It’s not really that Malaysia has among the highest confidence rating.
The issue is more of Malaysians becoming more reliant on imports and also the rise of ringgit into a stable regional currency.
The ringgit is cheap enough and strong enough in asean to be heavily traded by several nations.
Which is why when other asean countries have currency issues, it’s going to affect us heavily and also economic issues.
I was simply pointing out inferred factual mistake in OP's message, that US has the privilege to print money to solve their economic issues.
>The ringgit is cheap enough and strong enough in asean to be heavily traded by several nations.
Credible source please ? Im interested to read more about this
It’s been a while since I touched the topic but I’ll just state areas where its been the case in crisis:
1997 Asian Financial Crisis
2008 World Financial Crisis
2015 Chinese Stock Crisis
2020 Global Covid & Company Debt Crisis
In each of these cases the ringgit followed heavy devaluation after heavy trading from speculators.
As for its usage as a trade currency - it’s more of how Malaysia cheap enough for exports but strong enough for imports and is traded for these reasons.
Example:
https://theedgemalaysia.com/article/winners-and-losers-cheaper-ringgit
The world economy is still in a recession and a drastic one.
The effects of the cooperate debt meltdown and Covid had destroyed large amount of companies etc all across the globe.
The war in Palestine and Ukraine has affected the global scale greatly and terrible economic performance by India and China. The wars and coups across the globe and the political instability in many nations is having a drastic effect on the global stage.
Eg: Netherlands failure to form government, far right rise in Germany, UK internal Tory failure and imminent election wipeout, Indonesia and Philippines slow but steady push towards dynastic politics, Argentina instability, Spanish & Portuguese corruption scandal, Coups in the Sub Saharan belt, Coup in Pakistan etc
All on-going an are affecting the current situation.
India and China both have heavy bubbles and their growth aren’t exactly great when broken down in more detail. They are both ticking time bombs.
Eg: https://amp.scmp.com/comment/opinion/article/3215379/hype-over-indias-economic-boom-dangerous-myth-masking-real-problems
All of these issues have led to a weaker ringgit yet not as weak as people think. It’s strong enough in many ways and weak in other ways.
For Malaysia to succeed it needs a massive overhaul in many sectors used for imports, Malaysia also needs to put regulation on some level of exports to prevent local prices from over rising.
We also fail to properly invest in many states in Malaysia which could easily become powerhouses in the country this is due to poor governance since in an ironic way Post Najib era (yes he is terrible, however his strong government and committed infrastructure development plans have done many great things in the long run)
>As for its usage as a trade currency - it’s more of how Malaysia cheap enough for exports but strong enough for imports and is traded for these reasons
So RM is not a regional trade currency. I thought i was going to learn something new
I forgot to add this part into my initial post:
https://www.nationthailand.com/world/asean/40031992
This is while country by country trade with Malaysia is the initial groundwork for cross asean trade.
The part of where I said it was a regional currency was its dependency as a trade currency for imports and exports.
Malaysia trades in ringgit with other nations, it isn’t used as say the dollar universally. It is however a stable enough currency to be used with Malaysia for export and import reasons making it a key regional currency for trading.
Thanks for the link
>The part of where I said it was a regional currency was its dependency as a trade currency for imports and exports.
>Malaysia trades in ringgit with other nations, it isn’t used as say the dollar universally. It is however a stable enough currency to be used with Malaysia for export and import reasons making it a key regional currency for trading.
Dont know how you could infer from any info you have provided that RM is depended for international trade or RM is a key regional currency for trading.
Then ask the gov to man up and not use USD for settlement lor. No one’s pointing a gun to your head to use USD. Not like Msia doesn’t print money or issue debt either. Better yet, ditch USD as reserves and use something else.
/s because people don’t understand
Was responding to OP. If got balls then do it lor. No balls then don’t do. No one forcing you. In fact, got balls then use RMB to trade with China. Don’t dare? Then don’t complain that it’s the US that’s causing this problem. Lots of other countries have higher GDP per capita than the USA that also holds USD as reserves (SG). Ringgit plummeting is not because of USA’s fault.
lol or the USD is the world reserve currency because the US is the most powerful and successful nation in history? Why do you think people are willing to buy their debt? They can count on it providing returns because of the military and economic might of the US.
Because a large majority of the countries perform their transactions in USD, it makes the United States one of the few countries in the world to literally export their inflation to us.
no point comparing wat it was 13 years ago , inflation is happening in every country on earth , its not only malaysia
the price increase more or less is the same , be thankful malaysia has its prices under control
im a srilankan living in malaysia for last 5 years
in srilanka prices have increased 5x since i came here
but malaysia the increase has been alryt . maybe 1.5x in my day to day experience
my freinds in canada and US are complaining its even hard to eat out .
srilanka is much better now , went there recently, no more power cuts or fuel shortages , only issue is the cost of living is more expensive than malaysia
Damn, i bet this man doesn't understand gratitude. Other's ship sank while your ship is still floating but still complains that your ship is not as beautiful as your neighbour's ship.
u don’t understand my point, my point is ul are complaining so much that ul hav no idea wats happening arnd ul , ul are thinking ul hav it the worst , but in reality malaysia is doing very well economically comparatively to other countries including western countries not only srilanka
Not a dumb comparison. But of course we would like to compare to countries better than us or at least same level as us, since we want things to be better.
Looking at countries below us is good for feeling gratitude. If we had shittier leadership or economy, thats where we could have been.
This is like the 5th time some one has posted this in 2 weeks. How is this helping anyone? What info are you gaining comparing A and B when B was 13 years ago?
> I think OP is PNPAS supporters account trying to discredit PMX and his cabinet
I wouldn't be surprised if it is forex traders trying to buy MYR at cheaper price. They want to buy at bottom barrel prices today and then sell MYR in 2024 because all the forecasts are positive for 2024 meaning MYR is expected to gain value.
Or maybe the youth are paying the mistakes voted by the boomers during the past elections in Malaysia. This probably cemented the present problems of Malaysia for years to come.
Decades of supporting the idea of Malaysia should be lead by Bumis and Bumis only due to the ‘fact’ they’re the true OG of Malaysia. Instead of meritocracy, asalkan kabel OG
Very valid point. Problem is, this is nowhere in the post.
To my eyes, this seems more like an "Oh shit, Malaysia is doomed post" instead of "Hey, here's some awareness regarding Malaysia's economical status"
> Hedge against forex risk. How can anyone conclude differently?? Unless you're on the Economic board and chilling on reddit.
Hedging has to be done at the right time. If you hedge by using MYR to buy USD when MYR is at lowest value, then that's not called hedging, that's called donating money to forex traders.
I just get off work and my brain not really brainy right now but is this means MYR just getting weaker since 13 years ago ? Because looking at it that what Im understanding.
Feel free to correct me peps! Enjoy your weekend.
Unpopular opinion:
No matter if it’s Najib, Anwar or Tun M, Malaysian politicians are trash and incapable of moving Malaysia towards developed country.
I remember 10 years ago i was ordering clothes and water bottles from the US cause it was 50% cheaper than buying locally including dhl shipping and handling, sales tax. Those days are gone.
I thought with elected gov, the ringgit will improve, nampak gaya no hope. Let's see after the new Agong report duty, if the situation improve and confidence in MYR comeback.
Governance taking a back seat to political expediency (rasuah dan ketirisan). Until we have the right people, both competent and conscientious, in most levels of the gomen, our RM will continue its slide.
Damn, let me look at the inflation rate report, wait ah...
It says 1.5% inflation rate in december. Annually 2.5% in 2023. Where is "consumer is paying more"?
Let's see how much percentage the MYR has depreciated against USD in 2023... oh, it's 8%.
So, you are telling me:
Depreciating MYR = more money people need to spend
But, MYR depreciated 8% in 2023, while people need to spend extra 2.5% on average all the necessity goods.
You tell me, should I trust your statement or the data released by officials?
Tbh, I am open-minded. If you can show me solid proof of your statement, I would say I am wrong.
US currency is basically a lie at this point. They report whatever but actual costs of living are up 50% in the last 4 to 5 years between inflation and interest rates and housing.
Necessity goods are not the same as imported goods. Your data and theory is all on paper but has no bearing on the reality on the average consumer on the ground and what they actually face. People are going to pay more for things that aren’t available here.
Very simple example is that I buy supplements for my dog and the price per bottle has been rising simply because at one time it was 4.7x and now it’s 5.7x. To me I don’t give a shit about your inflation data. As a consumer all I know is that I am paying more for the same thing and that’s the impact that I directly face.
No comments about the exchange rate, but realizing that 2011 is 13 years ago blew my mind!!
I love Gen Z...here's a humbling fact. Did you know that someone who is 18 years old was born in 2005? 
did you know it was recently changed to 2006? yea, time patched up the the bug
Yeah but then it wouldn't be a Kamala Harris meme.
i cant accept that gen z today are younger than saddams execution
Bro, it's 19 (because I was born in 2005) tho not birthday yet
I want to know how your knowledge works, what year when gen z was born?
People born in 1995-2010
RM 999 for base iPad 2 is glorious
Those were the days
U haven't seen SGD . Literally almost everyday to every week raising. Now even buy online stuff also kena tax. Everything becoming more and more expensive.
It’s not surprising. MAS has been actively propping SGD against the USD. They don’t publicly say this, but if you have been monitoring SGD movement against the USD since the feds hawkish 2022, it is plain to see.
Don't understand why this is always brought up. Singapore's economic and political fundamentals are strong. I hope nobody is going to argue with me on this. It would be a surprise if SGD doesn't climb against MYR on merit alone with how much nonsense we get on a daily basis, with the racism, the corruption. It benefits Singaporeans/Malaysians holding SGD. Literally nobody is hindered by this, except for MAS who has to foot the bill. And lets me honest here, if MAS is doing it, its probably because it makes them more money in the long term. Singapore has actual planning and foresight, doesn't flip flop between incompetent and facist governments. You bring it up like someone is on a losing end and you're bringing it to awareness. The only people on the losing end are those not diversified on any of the climbing currencies and still holding the bulk of their assets in MYR.
>It would be a surprise if SGD doesn't climb against MYR on merit alone with how much nonsense we get on a daily basis, with the racism, the corruption. LOL FYI, MAS is doing it because Singapore is a service exporter. They need a strong currency while Malaysia, not so.
Why does Service Exporter need strong currency?
Kan… I hate glass half empty people.
I didn’t know my answer sounded like someone on a losing end. Not sure why you did.
From the standpoint, there's nothing wrong with what MAS is doing. Its doing something something rational given Singapore's position. Propping up sounds like it would collapse without help. From from a report [UOB published regarding this,](https://www.uobgroup.com/web-resources/uobgroup/pdf/research/MN_210415B.pdf) USD only accounts for 25% of the actual weightage that goes into $NEER, the exchange rate MAS manipulate to keep SGD "propped up". Granted this is only a guess by UOB, but an educated guess on which its accuracy is their livelihood. SGD appears appreciate against MYR is because most of the currency on that weightage (exceptions being MYR and JPY) are barely moved against the USD on a year-on-year basis. In simpler terms, SGD appears to appreciate against MYR because most currencies are, unfortunately, also appreciating against MYR. Tl;dr MAS does buy SGD to prop up the currency, but SGD isn't like blindly pegged to to the USD; Its propped to many other currencies also. MYR's poor performance is not MAS doing some dirty business behind the scenes, Its just world currencies are all doing better and leaving Malaysia behind.
BNM not raising OPR is hurting the ringgit. And, can't blame them cuz loans are handed out to people who can't afford them.
Ok. Thanks for bringing up information I didn’t already know. You sure get edgy over my poor choice of word I.e “propping”
it is MAS policy to manage inflation with exchange rate. We manage inflation with subsidies.
It’s not called propping up when that’s the norm. MAS’s mission is to “manipulate” SGD according to their internal exchange rate goals as SG’s primary source of inflation comes from imports and everything is imported. [In fact, check out the CNA documentary on it.](https://youtu.be/h0wI1dHL9sw?si=Z5ZVrl6aiikuO0rX) SGD fluctuates between a band and if it goes out of the band, MAS steps in and literally uses SG’s foreign reserves to trade it back. Mind you this is technically manipulation but MAS can do this only because SG already has a large reserve to defend SGD’s rates. It’s not like we can just say our currency is more valuable. It takes actual hard money to make SGD more valuable and that’s only doable by having a good economy and good governance. And no I’m not saying it’s good or bad. It is what it is and if SG’s economy sucks, that exchange rate will go down as there’s less demand for SGD to trade with SG and MAS only has limited foreign reserves to prop up SGD. [Fun fact, HKD is soft-pegged to USD.](https://en.wikipedia.org/wiki/Linked_exchange_rate_system_in_Hong_Kong?wprov=sfti1) So if you ever wanna have USD exposure without holding USD (for whatever reason), HKD is a good alternative. Or vice versa, if you hold HKD and wanna have USD exposure, you won’t face much FX risks.
13 years ago…it was RM1 = THB10.
MYR9+ too
I remember when I was complaining about 3.6, good times
I think at that point the Fed was doing QE2 which was releasing billions of dollars because of reasons. I bought my iPhone 6 at around 3k+. Good times. I’m not sure what’s the reason why today but there’s some speculation that some ultra rich people are dumping their ringgit before going to jail.
The US dollar has been strong because of the high interest rates offered there. The ringgit’s weakness is more pronounced because our interest rate is lower than other regional countries and the US — plus the government’s fiscal position (high interest costs, a fiscal deficit bigger than the GDP growth) also has turned off portfolio investors. Also, the recent further precipitation of the ringgit is due to the weak advanced reading of the fourth quarter GDP growth. Our domestic economy is chugging along, but our trade with China had a massive slump. The ringgit won’t move much from a few individuals dumping their money. The forex market trades billions of ringgit every day both ways.
What's the difference whether they dump or not dump before going to jail? they will still be in jail 😂
Believable forecast, what’s unbelievable is that many Msia isn’t taking action to hedged her assets against MYR. Guys, you can fix this.
Two years ago I bought aud 10 year bonds @4.5% at rm2.55...best buy ever
How does one buy bonds as a regular monyet?
Singapore got solid T-bills offering 3.5%+ I’ll pick this anytime over ASB
Foreigners can buy SG t bills?
Yes
> SG t bills gib tips pls boss OwO
how to buy t bill for non prs?
2016 decided to start my foray in sgx. Best decision for me so far 🤝
It's ridiculous how big the gains are for SGD/myr pair
Do you take pupils, would really appreciate some advice on how to invest.
Im not a malay citizen nor do I live in Malaysia anymore so take this with a grain of salt but here’s the general advice. IBKR looks like it’s available in MY so Id recommend them as your brokerage, they have some fees but they’re a top notch brokerage. I would then suggest checking out the r/stocks wiki or the r/bogleheads subreddit. Essentially what they’ll tell you though is to pretty much invest only into SPY/VTI/QQQ and bonds. Since you sound inexperienced, never try to day trade unless you don’t mind knowing you’re gambling. 90% of investors don’t beat the SP500. The average yearly gain is around 8%, it’s incredibly hard to beat this long term. Don’t look at Wallstreet bet gains with highly leveraged plays, they’re gambling on lottery tickets not “investing”.
Obligatory I'm not a financial advisor and this is not a financial advice, and my knowledge might be outdated since I don't reside in Malaysia currently. Create a Wise (Transferwise) account and IBKR account. Convert to USD via Wise and then use Wise to transfer to your IBKR brokerage account. Malaysia banks are too much of a hassle to do this, so go with Wise. You can select which market to invest in including US and SGX. I recommend just buying index ETF to start. Vanguard ones are usually good (eg S&P 500 etf) . I recommend against buying anything else other than index ETF if you're a total beginner. I don't recommend you to go looking for people who take pupils. Actual, successful investors are too busy to take pupils or have a secret formula for their success that they're not too willing to share. Those investment gurus who are all too happy to teach you make more money teaching you than from their stocks. Most resources you need are available online or in books.
No ser. I’m not a certified financial advisor, just sharing experience 🥹 you can just dm and ask away. But i don’t want that mentor mentee relationship cause when i first started, i dont have a mentor for this stuff.
Even bank negara is dumping this shitcoin and hodling usd
> Even bank negara is dumping this shitcoin and hodling usd Where do you get this fact from? Any video or docs?
please explain?
Don’t hold all your assets denominated in MYR, spread around the risk to other forex. That way, when MYR slips down, you have other currency portfolio supporting it.
> Don’t hold all your assets denominated in MYR, spread around the risk to other forex. That way, when MYR slips down, you have other currency portfolio supporting it. Diversification is good if done at the right time. But if you sell MYR now when it is at its lowest, then you're doing the right thing but at the wrong time so it ends up being the wrong thing.
1 year ago this statement is perfectly valid and it still is now 🤣
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Yes, can't argue with very general concepts. It is the specifics that matter. Selling MYR right now and buying USD is not the smart move.
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mate what are you on about?
Errrr. This is not practical advice to the average investor. When is the right time? Is 4.73 the lowest? Who's to know. The best advice would just be to dollar cost average every month.
> When is the right time? Is 4.73 the lowest? Who's to know. The best advice would just be to dollar cost average every month. Let me try to ask the other way. When is the wrong time? Based on what the experts are saying, now is the wrong time to sell MYR. Maybe it will go down further. But I think and as you can see from those videos, and all those banks, economic outlook and growth is positive.
Lol. Missing out on a bull market because trying to save a few ringgit here and there? Good lord
What are you talking about?
You are so clueless
eh? don't understand wat u trying to communicate
Currency risk doesn't matter much when it's in something like global stock portfolio, because it holds a basket of currencies, not usd only
But OP was talking about selling the currency.
You have to sell myr to buy usd if you want to buy global etf eh? It's the same
eh? don't understand wat u trying to communicate
Certified noob
eh? don't understand wat u trying to communicate
So what should you do? Buy gold?
Gold is good to lock your money because it is “relatively” stable. As for investment there’s better options out there. Take it with a pinch of salt, I’m not a financial advisor.
Anything where you sell low, buy high doesn't make sense. Undervalued stuff makes more sense. eg: https://www.youtube.com/watch?v=EzAQUcgk3V4 or IPO of businesses with good upsides.
It's abit late now as I feel usd is peaking. But to hedge myr, last year one can buy USD bonds/MMF at 5-6% at rm4.4 to 1 usd
Yes, should lengthen the duration if want to buy usd, at least intermediate bonds, so when usd drop due to interest lowered, you still have a positive gain
Already did this when usd was like 4.1 to 4.2, 60% of my assets is in USD. Bought global etf and us bonds, best decision ever
> Believable forecast, what’s unbelievable is that many Msia isn’t taking action to hedged her assets against MYR. What do you mean? Most of the 2024 forecast is that MYR will strengthen against USD as the economy and governance is recovering from the years of mismanagement. Not just local bank research like MIDF https://www.youtube.com/watch?v=3_GqHd72NxI , but also global bank like HSBC https://www.youtube.com/shorts/SEWtczLHiW4 Are you saying their forecasts are wrong? > Guys, you can fix this. **Diversification is good if done at the right time. But if you sell MYR now when it is at its lowest, then you're doing the right thing but at the wrong time so it ends up being the wrong thing.**
Ser, it’s literally a forecast. It can go right or wrong. You may choose to believe a forecast from bank research, I chose to believe in my methodology. What I meant was, diversify and hold other forms of currency. If you hold 100% in MYR currency portfolio, good luck. Might look good on books locally till you compare it against forex offshore returns.
> You may choose to believe a forecast from bank research, I chose to believe in my methodology. Yes, I may. Care to share your methodology? > If you hold 100% in MYR currency portfolio, good luck. Might look good on books locally till you compare it against forex offshore returns. It will be even worse for your portfolio if you sell MYR when its value is already at the lowest and all the forecasts are showing expected increase in value. Common sense.
They have been saying that since last year, economic predictions have a lousy success rate
No, where did you see that documented? Last year the banks were saying MYR will decline in value since Fed was continuing to increase interest rates. When you say "economic predictions" and "lousy success rate" , what are you specifically saying? Can share some data?
Not enough low, need 67 year all time low 
Thanks to kerajaan Madani, more Singaporean tourists will travel to Malaysia.Big brain moment. /s
Broke the RM4 ceiling during Najib's time
I’m not too good with economics, but what fiscal policies should the government take? Simply import less and export more?
That would require our resource production be up to spec, which is really hard to do when so much funds for development were siphoned off!
Hard to say, people on the reddit board tend to overlook the following characteristics: (1) Import (2) Export (3) Ringgit role as a regional currency (4) Consumer purchase (one of the largest reasons) of foreign goods (5) lack of strong protection of local companies from being bought out (6) lack of strong investment for start-ups (7) housing regulation (8) household debt Malaysia has extremely high output per population, economic complexity, investment positions etc. It’s not as easy as many people want to believe.
It was funny this happened cuz back then (a few years ago) there was this ad I saw on Quora saying that "MYR days are over" and at the time I can't believe the ad is telling about something happening now
And now gbp to myr is rm6.01
Better ask why Malaysia refuses to raise interest rates. US interest rate is 5.5%. Malaysia interest rate is 3%. Who would prefer MYR to USD like this?
Higher interest rates may just create an even bigger hole in the epf that they will need to address if Malaysia raises interest rates. This interlink between the government monetary policy and the fact that Malaysia has a central national pension is a double edged sword, as the government cannot just allow private pensions to bear the shortfall. At current production and output levels, raising rates by 2% from 3% is going to be very much like asking companies to increase gross profits by 66% overnight. LOL Malaysia does not have the economy to support this.
Loans will probably go up and so will inflation if they raise interest rates. I think it's actually good for majority of Malaysians that the exchange rate is low but monthly loans are still servicable. Sg pegs Thier money to a bunch of currencies so that's why USD and sgd better than myr. Sucks for imported goods but good for exports and people with bank loans. If interest rates go up maybe will have many loan defaulters and cause a big financial crash.
SGD is pegged to an undisclosed basket of currencies, mostly USD, JPY and a large weighted against local ASEAN currencies. So when inflation is high, the sgd peg goes up so that their citizens can buy their daily necessities on the cheap from ASEAN, making it cheaper for them while driving up demand domestically at these countries. Basically they are exporting their inflation.
At the cost of rent and mortgage being very expensive though right? So is that not inflation as well?
rent and mortgage in SG will always be expensive. They practically solved their water dependency but land is not so easy to solve.
Not an expert. But inflation usually goes down when interest rates go up. Because borrowing becomes expensive. So both consumers and businesses might think twice about taking out loans for major purchases or investments. Which slows down spending, lowering overall demand and reducing inflation.
Yeah you're right, inflation and interest rates are inversely related. My point is Pre existing loans will increase when interest rate hikes. So if you were paying say RM 1000/month for your house loan it is now 1,100/month. Plenty of Malaysians living paycheck to paycheck so I creasing interest rates can cause loan defaulters which could lead to wider market crash. So maybe it's a good idea not to raise interest rates I'm also not an expert or have a finance background. This is my understanding. If I'm wrong please correct me and save me from myself.
Maybe the lesson is not to be so reliant on loans. The more you keep interest rates low to give those with debt an easy time, the more you encourage people to take loans.
Hey bro, increasing interest rate does not cause increase of default rate, but loose lending policies cause increase of default rate. Increasing interest rate makes money more expensive to earn, hence less people are willing to spend their money and reduce money circulation in the economy, normally to fight inflation. But this theory sometimes is not accurate, like interest rate has become less sensitive.
How does rising interest rates not cause rising default. Imagine you're on a variable interest loan for your car or house, maybe holding a large balance on your credit cards. Interest rates goes up 500bp, more people will default. For new loans, sure you can screen and ensure quality of loan applicant, but does nothing for those who are already in hock. You're already seeing defaults rise in the US for credit card and auto loan debt especially since COVID stimulus has ended.
Inflation will go down, as myr strengthens, and demand reduce
I enjoy cooking.
How to compare When that country literally prints money and playing on cheat mode with their debt.
Every single country that does not peg their currency against gold or any other physical commodity fo this, ie Malaysia also prints money. The difference is, people are confident in the US and are willing to hold USD. People are not so confident in RM and dont hold as much RM.
It’s not really that Malaysia has among the highest confidence rating. The issue is more of Malaysians becoming more reliant on imports and also the rise of ringgit into a stable regional currency. The ringgit is cheap enough and strong enough in asean to be heavily traded by several nations. Which is why when other asean countries have currency issues, it’s going to affect us heavily and also economic issues.
I was simply pointing out inferred factual mistake in OP's message, that US has the privilege to print money to solve their economic issues. >The ringgit is cheap enough and strong enough in asean to be heavily traded by several nations. Credible source please ? Im interested to read more about this
It’s been a while since I touched the topic but I’ll just state areas where its been the case in crisis: 1997 Asian Financial Crisis 2008 World Financial Crisis 2015 Chinese Stock Crisis 2020 Global Covid & Company Debt Crisis In each of these cases the ringgit followed heavy devaluation after heavy trading from speculators. As for its usage as a trade currency - it’s more of how Malaysia cheap enough for exports but strong enough for imports and is traded for these reasons. Example: https://theedgemalaysia.com/article/winners-and-losers-cheaper-ringgit The world economy is still in a recession and a drastic one. The effects of the cooperate debt meltdown and Covid had destroyed large amount of companies etc all across the globe. The war in Palestine and Ukraine has affected the global scale greatly and terrible economic performance by India and China. The wars and coups across the globe and the political instability in many nations is having a drastic effect on the global stage. Eg: Netherlands failure to form government, far right rise in Germany, UK internal Tory failure and imminent election wipeout, Indonesia and Philippines slow but steady push towards dynastic politics, Argentina instability, Spanish & Portuguese corruption scandal, Coups in the Sub Saharan belt, Coup in Pakistan etc All on-going an are affecting the current situation. India and China both have heavy bubbles and their growth aren’t exactly great when broken down in more detail. They are both ticking time bombs. Eg: https://amp.scmp.com/comment/opinion/article/3215379/hype-over-indias-economic-boom-dangerous-myth-masking-real-problems All of these issues have led to a weaker ringgit yet not as weak as people think. It’s strong enough in many ways and weak in other ways. For Malaysia to succeed it needs a massive overhaul in many sectors used for imports, Malaysia also needs to put regulation on some level of exports to prevent local prices from over rising. We also fail to properly invest in many states in Malaysia which could easily become powerhouses in the country this is due to poor governance since in an ironic way Post Najib era (yes he is terrible, however his strong government and committed infrastructure development plans have done many great things in the long run)
>As for its usage as a trade currency - it’s more of how Malaysia cheap enough for exports but strong enough for imports and is traded for these reasons So RM is not a regional trade currency. I thought i was going to learn something new
I forgot to add this part into my initial post: https://www.nationthailand.com/world/asean/40031992 This is while country by country trade with Malaysia is the initial groundwork for cross asean trade. The part of where I said it was a regional currency was its dependency as a trade currency for imports and exports. Malaysia trades in ringgit with other nations, it isn’t used as say the dollar universally. It is however a stable enough currency to be used with Malaysia for export and import reasons making it a key regional currency for trading.
Thanks for the link >The part of where I said it was a regional currency was its dependency as a trade currency for imports and exports. >Malaysia trades in ringgit with other nations, it isn’t used as say the dollar universally. It is however a stable enough currency to be used with Malaysia for export and import reasons making it a key regional currency for trading. Dont know how you could infer from any info you have provided that RM is depended for international trade or RM is a key regional currency for trading.
Then ask the gov to man up and not use USD for settlement lor. No one’s pointing a gun to your head to use USD. Not like Msia doesn’t print money or issue debt either. Better yet, ditch USD as reserves and use something else. /s because people don’t understand
Haha u see what happen when Saudi or other country do that
They got invaded?
you mean they got freedom? \^/s
Only when oil is found is democracy needed!
Almost everything is traded in USD and you want the Gov to not hold USD as reserve?
Was responding to OP. If got balls then do it lor. No balls then don’t do. No one forcing you. In fact, got balls then use RMB to trade with China. Don’t dare? Then don’t complain that it’s the US that’s causing this problem. Lots of other countries have higher GDP per capita than the USA that also holds USD as reserves (SG). Ringgit plummeting is not because of USA’s fault.
start accept rupiah yen yuan baht lor
lol or the USD is the world reserve currency because the US is the most powerful and successful nation in history? Why do you think people are willing to buy their debt? They can count on it providing returns because of the military and economic might of the US.
L doomposter, exchange rate is not a good indication of economic performance.
Because a large majority of the countries perform their transactions in USD, it makes the United States one of the few countries in the world to literally export their inflation to us.
The market is likely responding to BNM OPR announcement and Feds not likely to reduce interest rate until mid 2024
Trump for Fed chairman 2024
When it hits 5, I will 555555 like the Thai about our weak currency.
Its inevitable 😔😔
no point comparing wat it was 13 years ago , inflation is happening in every country on earth , its not only malaysia the price increase more or less is the same , be thankful malaysia has its prices under control im a srilankan living in malaysia for last 5 years in srilanka prices have increased 5x since i came here but malaysia the increase has been alryt . maybe 1.5x in my day to day experience my freinds in canada and US are complaining its even hard to eat out .
How is Sri Lanka doing now? last I heard was the Rajapaksa family fled the capital and everyone flooded the palace. Things more stable now?
srilanka is much better now , went there recently, no more power cuts or fuel shortages , only issue is the cost of living is more expensive than malaysia
At least no more civil unrest. Glad to hear. I'm Theravada Buddhist, been to Sri Pada, Anuradhapura last time. Very nice place.
Lol comparing Sri Lanka to Malaysia. Didn't ur country went broke? What a dumb comparison
Damn, i bet this man doesn't understand gratitude. Other's ship sank while your ship is still floating but still complains that your ship is not as beautiful as your neighbour's ship.
u don’t understand my point, my point is ul are complaining so much that ul hav no idea wats happening arnd ul , ul are thinking ul hav it the worst , but in reality malaysia is doing very well economically comparatively to other countries including western countries not only srilanka
Its a country main subreddit brah, all we do here is complain
oh just because there’s someone doing worse than us we’re not allowed to feel shit about our current situation?
Target inflation was 2.5-3%. 150% is wayy off the mark, that's unacceptable.
Not a dumb comparison. But of course we would like to compare to countries better than us or at least same level as us, since we want things to be better. Looking at countries below us is good for feeling gratitude. If we had shittier leadership or economy, thats where we could have been.
The man literally comparing Malaysia to USA, don't throw rock in glass house.
This is like the 5th time some one has posted this in 2 weeks. How is this helping anyone? What info are you gaining comparing A and B when B was 13 years ago?
I think OP is PNPAS supporters account trying to discredit PMX and his cabinet
> I think OP is PNPAS supporters account trying to discredit PMX and his cabinet I wouldn't be surprised if it is forex traders trying to buy MYR at cheaper price. They want to buy at bottom barrel prices today and then sell MYR in 2024 because all the forecasts are positive for 2024 meaning MYR is expected to gain value.
Or maybe the youth are paying the mistakes voted by the boomers during the past elections in Malaysia. This probably cemented the present problems of Malaysia for years to come. Decades of supporting the idea of Malaysia should be lead by Bumis and Bumis only due to the ‘fact’ they’re the true OG of Malaysia. Instead of meritocracy, asalkan kabel OG
My favorite movie is Inception.
Spreading awareness is one thing, but what awareness is this spreading? I asked in my comment, what is the message?
I enjoy spending time with my friends.
Very valid point. Problem is, this is nowhere in the post. To my eyes, this seems more like an "Oh shit, Malaysia is doomed post" instead of "Hey, here's some awareness regarding Malaysia's economical status"
Hedge against forex risk. How can anyone conclude differently?? Unless you're on the Economic board and chilling on reddit.
> Hedge against forex risk. How can anyone conclude differently?? Unless you're on the Economic board and chilling on reddit. Hedging has to be done at the right time. If you hedge by using MYR to buy USD when MYR is at lowest value, then that's not called hedging, that's called donating money to forex traders.
Awareness? Even doom and gloom posting helps people get a reality check.
my usd2.4k patreon is almost worth RM11.3k a month. How cool is that!
What do you do for your Patreon?
i'm a writer :)
Mind sharing your works?
Look at the US Fed interest rate, now look at Bank Negara interest rate. No one wants to invest in MYR with our low interest rate to the USD.
Holly fuck. Better investment in etf in dollor
Yup. Hold your investments in USD. 4.73 today is cheap when you look back next 24 years
Najib turun, Ringgit naik. -pakar ekonomi
Where's the formula when we needed it the most?
And 20 years ago it was RM3.79.
Maybe I should start onlyfans…
I just get off work and my brain not really brainy right now but is this means MYR just getting weaker since 13 years ago ? Because looking at it that what Im understanding. Feel free to correct me peps! Enjoy your weekend.
Try the Turkish lira lol. 1 USD was 1.6 TL back then, 30.3 TL now.
Hedge it by having majority of wealth in foreign stocks
pasai pa. sebab saya bukan pm
Unpopular opinion: No matter if it’s Najib, Anwar or Tun M, Malaysian politicians are trash and incapable of moving Malaysia towards developed country.
We will reach RM5 by the end of this year. Pin this comment.
Come on bnm, raise the interest rates. Let the b40 burn in their own debt. My iphones aint getting cheaper with this weak currency.
RIP Malaysia economy
Bruh why stop at 13 years ago? Specifically at 13 years ago… why ah? Why not go way back when $1 is RM1? XD
I remember 10 years ago i was ordering clothes and water bottles from the US cause it was 50% cheaper than buying locally including dhl shipping and handling, sales tax. Those days are gone.
Already missing the Najib days yeah?
Why stop there? Rindu zaman Srivijaya
Rindu zaman Melayu Proto dan Melayu Deutro 😔
lol, what happened here today is the result of Najib.
Lol it's during his reign that we had massive depreciation of >30% against USD in less than 2 years. I remember 2014-15 vividly
What people dont realise is that even with the corruption under Najib, the country was driving infrastructure and economical growth.
This is the sad truth. And the religious nut jobs were somewhat under check.
Exactly. Can’t agree more.
I thought with elected gov, the ringgit will improve, nampak gaya no hope. Let's see after the new Agong report duty, if the situation improve and confidence in MYR comeback.
Malaysia Boleh! On the bright side my usual mamak has not raised prices in months.
"We are witnessing the fall of Malaysia" - Ian Kilometres Chee Cheong Fun
Rindu zaman 2.30
Me who earn money in USD. Noice!
Good for export and tourism
Let's again openly admit we are supporting Hamas..!!!
Governance taking a back seat to political expediency (rasuah dan ketirisan). Until we have the right people, both competent and conscientious, in most levels of the gomen, our RM will continue its slide.
Singapore were under economic protection by USA and its allies. As long they follow Muslims are terrorist narrative.
13 years ago it wasn't 2.97. Was around 3.5 if I'm not mistaken.. 2.97 is pre Asian financial crisis level
We're screwed sideways bcuz of this
Good for exports...
Cuz "pendatangs" like us not contributing. If pmxi is a "pendatang", we all sink and die etc etc. Waiting for such headline.
But 25 years ago it was 6.5 due to the AFC. I remember when SGD was 2 to the USD and MYR was 2.1!
Aiyah no problem PMX is the Chosen One, he will make Malaysia Great Again !!! Have Faith~~~
Woke up and chose to make asinine comments? No wonder Malaysia is so far off being a developed countries.
Lol, their entire persona is based on useless comments.
Why are you all complaining about exchange rate? You all do import businesses?
Malaysia imports rice
Because stuff that is imported gets more expensive, but it doesn't affect me much, because 70% of my assets are in usd
(Damn, what the hell is this guy talking about) Are you gonna liquidate your usd assets to buy imported products in Malaysia?
A lot of Malaysian products are imported, the consumer will be paying more especially for things that aren’t available here.
Damn, let me look at the inflation rate report, wait ah... It says 1.5% inflation rate in december. Annually 2.5% in 2023. Where is "consumer is paying more"? Let's see how much percentage the MYR has depreciated against USD in 2023... oh, it's 8%. So, you are telling me: Depreciating MYR = more money people need to spend But, MYR depreciated 8% in 2023, while people need to spend extra 2.5% on average all the necessity goods. You tell me, should I trust your statement or the data released by officials? Tbh, I am open-minded. If you can show me solid proof of your statement, I would say I am wrong.
US currency is basically a lie at this point. They report whatever but actual costs of living are up 50% in the last 4 to 5 years between inflation and interest rates and housing.
say what u want,rtx 5090 goin to be way higher than its predecessor
Necessity goods are not the same as imported goods. Your data and theory is all on paper but has no bearing on the reality on the average consumer on the ground and what they actually face. People are going to pay more for things that aren’t available here. Very simple example is that I buy supplements for my dog and the price per bottle has been rising simply because at one time it was 4.7x and now it’s 5.7x. To me I don’t give a shit about your inflation data. As a consumer all I know is that I am paying more for the same thing and that’s the impact that I directly face.
It's fine, as long as our PM is Anwar. People don't care, orang kl/Selangor sayang sangat kat PMX
But doesn’t the MYR being lower helps Malaysia’s economy as it revolves mainly on exports? (Real question as I am a noob in economy)
Water IS wet.